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Fly News Breaks for July 17, 2018
CATM
Jul 17, 2018 | 09:46 EDT
SunTrust analyst Andrew Jeffrey believes Cardtronics will rally sharply as investors digest the announcement that LINK, the UK's major interbank network, has canceled the third of four planned 5% annual interchange cuts, and has suspended the fourth, pending a review next year. These actions provide a $25M-plus multi-year EBITDA tailwind, beginning in C20, he contends. In addition, Jeffrey notes that management now estimates that each 5% interchange reduction will cost it $12M-$13M of EBIT, lower than its prior $15M estimate. The analyst reiterates a Buy rating and $35 price target on the shares.
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